On September 24, Senate Finance Committee Ranking Member Sen. Ron Wyden (D-OR) introduced S.5507, the Saver’s Match Enhancement Act (SMEA). The bill would make the Saver’s Match a Roth contribution (taxable when contributed, tax-free when withdrawn). It would double the current law Saver’s Match from 50 percent to 100 percent (from $1,000 to $2,000).
SMEA would also expand eligibility for the Saver’s Match. It would be fully available for married taxpayers filing jointly with modified adjusted gross income (MAGI) of $115,000 or less. Full eligibility would be available for savers with MAGI of $64,750, and for MAGI $42,500 for single taxpayers.
The bill’s effective date is for tax years beginning after December 31, 2026.
While S.5507 is currently a standalone bill, expectations are that it will be folded into the next generation retirement savings bill (SECURE 3.0) next year.
Prospects: SMEA’s prospects for 2026 are dim, but brighten significantly for 2027, especially if Democrats take control of the Senate (if that happens, Sen. Wyden is likely to be chairman of the Finance Committee, which has jurisdiction over this measure). However, enactment is not guaranteed. The bill has not yet been scored (for potential revenue loss), but the expectation is that it will lose considerable federal revenue. Thus, if it is offset (so far it is not), the offset could dampen support for the proposal. If it is not offset, its addition to the federal deficit/debt could prove a hurdle that may be difficult to overcome.
NAIFA Staff Contact: Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org